Correlation Between SenzaGen and SinterCast

Can any of the company-specific risk be diversified away by investing in both SenzaGen and SinterCast at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SenzaGen and SinterCast into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SenzaGen AB and SinterCast AB, you can compare the effects of market volatilities on SenzaGen and SinterCast and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SenzaGen with a short position of SinterCast. Check out your portfolio center. Please also check ongoing floating volatility patterns of SenzaGen and SinterCast.

Diversification Opportunities for SenzaGen and SinterCast

0.37

Correlation Coefficient

SenzaGen  SinterCast

Weak diversification

The 3 months correlation between SenzaGen and SinterCast is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding SenzaGen AB and SinterCast AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SinterCast AB and SenzaGen is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SenzaGen AB are associated (or correlated) with SinterCast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SinterCast AB has no effect on the direction of SenzaGen i.e., SenzaGen and SinterCast go up and down completely randomly.

Pair Corralation between SenzaGen and SinterCast

Assuming the 90 days trading horizon SenzaGen is expected to generate 1.1 times less return on investment than SinterCast. In addition to that, SenzaGen is 3.55 times more volatile than SinterCast AB. It trades about 0.04 of its total potential returns per unit of risk. SinterCast AB is currently generating about 0.17 per unit of volatility. If you would invest  10,037  in SinterCast AB on April 22, 2025 and sell it today you would earn a total of  1,463  from holding SinterCast AB or generate 14.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

SenzaGen AB  vs.  SinterCast AB

SenzaGen AB

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SenzaGen AB are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, SenzaGen unveiled solid returns over the last few months and may actually be approaching a breakup point.

SinterCast AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SinterCast AB are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SinterCast unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SenzaGen and SinterCast

The main advantage of trading using opposite SenzaGen and SinterCast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SenzaGen position performs unexpectedly, SinterCast can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SinterCast will offset losses from the drop in SinterCast's long position.

The idea behind SenzaGen AB and SinterCast AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.